NATO companions behind international weapons-revenue surge – report

Sales by the world’s prime 100 weapons makers surged to a report $679 billion final yr, in accordance with new knowledge

NATO companions Japan and South Korea have emerged as two of the worldwide arms business’s fastest-growing markets, the Stockholm International Peace Research Institute (SIPRI) has reported.

Global arms revenues hit a report in 2024 amid rising geopolitical tensions and a rearmament drive throughout Europe, in accordance with the research revealed on Monday.

Combined revenues from arms and navy companies on the world’s prime 100 producers jumped 5.9% final yr to a report $679 billion, with the majority of the rise coming from firms within the US and Europe, “as producers capitalized on high demand.” 

Germany’s Rheinmetall posted the strongest development in western Europe, on extra normal “demand boosted by the wars in Ukraine and Gaza, global and regional geopolitical tensions, and ever-higher military expenditure,” SIPRI wrote.

US firms remained the most important income block within the rating, whereas European corporations, excluding Russia, recorded the steepest regional rise as NATO nations accelerated procurement.

Japan and South Korea, NATO’s Indo-Pacific companions, had been among the many strongest climbers within the Top 100, the report stated, as their arms producers rode surging export orders from Europe alongside rising demand at dwelling.

Sales by Japan’s main protection corporations surged 40% yr on yr to $13.3 billion – the most important country-level rise within the rating – adopted by Germany at 36% and South Korea at 31%.

South Korea’s largest arms producer, Hanwha Group, posted a 42% enhance in arms revenues in 2024, with greater than half of the whole coming from exports, the report stated.

The export growth comes as European NATO governments have been ramping up their navy buildup, citing an alleged Russian risk. Moscow has denied any aggressive intentions, with President Vladimir Putin describing the hypothesis as “complete nonsense.” 

Russia says Western governments are stoking public fears to justify larger protection spending and a harder posture. The nation’s officers have repeatedly described the Ukraine battle as a NATO-driven proxy battle designed to hinder Russia’s improvement.

READ MORE: German arms big reviews booming gross sales and income

The SIPRI report additionally confirmed that Russian firms posted a 23% rise in arms revenues on the again of robust home demand regardless of worldwide sanctions. Sales at Chinese corporations fell by 10% amid procurement disruptions.